Trading In Alcoa's Wake
And we're off! Earnings season is now underway with Alcoa reporting earnings after the bell Monday.
The aluminum manufacturing giant reported first-quarter earnings of 10 cents a share excluding one-time items, reversing a loss of 59 cents a share this time last year.
Alcoa said its sales reached $4.89 billion, up from $4.147 billion last year.
Analysts who follow Alcoa expected more from the company on the revenue side. A consensus estimate from Thomson Reuters put Alcoa's profit at 10 cents a share on sales of $5.238 billion.
The quarterly revenue miss was the first for Alcoa since 2007.
Aluminum prices are up 8 percent year-to-date, to about $2,400 per metric ton, that's about $1.09 a pound.
Aluminum, used in automobile and aircraft manufacturing, and for kitchen wrap and beverage cans, reached a peak of $3,380 per tonne in July 2008. But it slumped 35 percent later as the global economy went into recession and has only slowly risen.
I thought the numbers should have been better, says Guy Adami. At current levels I think Alcoa is fairly priced.
The market has been screaming higher yet Alcoa isn’t participating, muses Pete Najarian. That concerns me.
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